Will Hurricane Sandy Affect Oil Prices?
The arrival of Hurricane Sandy on America’s shores is causing severe disruptions to the normal course of business. All along Hurricane Sandy’s path, businesses are shutting down and preparing for the worst. Today, ahead of Hurricane Sandy’s arrival, the U.S. stock exchanges and floor trading on the New York Mercantile Exchange (NYMEX) are closed, although electronic trading on the NYMEX will remain open.
Hurricane Sandy will have one of its biggest impacts on gasoline prices, but won’t necessarily have an impact on oil prices. Many people misunderstand the correlation between oil prices and gasoline prices. For gasoline to be produced, refineries need to convert oil into a usable product. Because of the arrival of Hurricane Sandy, a vast number of East Coast refineries have been shut down.
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